Economy, Business And Markets

Australia Limits Export of Aluminum Semis to Iran

Australia Limits Export of Aluminum Semis to Iran Australia Limits Export of Aluminum Semis to Iran

Australia, which lifted sanctions on Iran two weeks ago, continues to restrict the export of certain semi-finished aluminum and aluminum alloy products, says the Department of Foreign Affairs and Trade.

But bauxite and alumina, precursors to the production of primary aluminum, are not controlled for export, Platts–the London-based provider of energy and metals information and a source of benchmark price assessments in the physical energy markets–quoted DFAT as saying.

The country’s amended policy on Iran retains controls on the export of the following categories of aluminum and alloys, in the form of sheet, plate, tube or bar:

- Aluminum bars, rods and profiles

- Aluminum, not alloyed; bars and rods

- Aluminum alloys; hollow profiles and bars and rods

- Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm

- Aluminum foil (whether or not printed or backed with paper, paperboard, plastic or similar backing material) of a thickness (excluding any backing) not exceeding 0.2 mm

- Aluminum tubes and pipes, and

- Aluminum tube or pipe fittings (such as couplings, elbows and sleeves).

Australia imposed economic sanctions on Iran from October 2008 until January 17, 2016.

Iran is a net buyer of alumina and has historically favored shipments from Australia. In recent years, Iran has also often paid substantial premiums for Indian alumina.

Last October, Iran’s Iralco signed a term contract with Nalco of India, agreeing to pay 18.5% of LME aluminum prices, FOB Visakhapatnam, for 300,000 million tons to be shipped over January 1-December 31, 2016.

In comparison, Nalco fixed two other alumina term contracts for 2016 with Vitol of Switzerland at 17.07% and 16.8% of the LME, comprising 330,000 and 270,000 million tons respectively.